Three IPOs and two SPACs debuted this week, while the pipeline got a boost from a flurry of initial filings.
Oncology biotech CARGO Therapeutics (CRGX) priced at the bottom of the range to raise $281 million at a $611 million market cap. The biotech's lead program is an autologous CD22 CAR T-cell candidate, the underlying CAR of which the company exclusively licensed from the National Cancer Institute. This past August, CARGO initiated a potentially pivotal Phase 2 trial in relapsed or refractory large B-cell lymphoma, with interim results expected in 2025. It finished the week down 3%.
Reinsurer and specialty insurance provider Hamilton Group (HG) priced below the range to raise $225 million at a $1.7 billion market cap. Mostly operating through subsidiaries in Bermuda and Europe, the company provides a range of insurance products globally, including casualty and specialty insurance, as well as reinsurance. Hamilton has steadily improved its combined ratio, though it has been historically high, and its arrangement with Two Sigma adds complexity to the deal. Hamilton Group finished the week flat.
Cross-border logistics provider Globavend (GVH) priced at the bottom of the range to raise $6 million at a $59 million market cap. The company provides cross-border logistics services from Hong Kong to Australia and New Zealand, and its customers are primarily B2C e-commerce merchants. Globavend finished the week down 53%.
Two SPACs priced this week: Agriculture & Natural Solutions Acquisition (ANSCU) raised $300 million to target agricultural decarbonization, and AI Transportation Acquisition (AITRU) raised $60 million to target AI in transportation.
| 5 IPOs During the Week of November 6th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 11/10 |
| AI Transportation Acq. (AITRU) | $60M | $79M | 0% | +2% | +2% |
| Blank check company targeting the AI transportation industry. | |||||
| Ag & Nat Solutions Acq. (ANSCU) | $300M | $375M | 0% | +1% | +1% |
| Blank check company backed by Riverstone and Impact Ag focused on decarbonization in agriculture. | |||||
| Hamilton Group (HG) | $225M | $1,696M | -12% | +0% | +0% |
| Bermuda-based provider of reinsurance and specialty insurance. | |||||
| CARGO Therapeutics (CRGX) | $281M | $611M | -6% | -3% | -3% |
| Phase 2 biotech developing CAR-T cell therapies for hematological cancers. | |||||
| Globavend (GVH) | $6M | $59M | -11% | -36% | -53% |
| Provides cross-border logistics and shipping services. | |||||
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Six IPOs, one direct listing, and one SPAC submitted initial filings this past week. Chinese EV brand ZEEKR (ZK) led the pack, as it filed to raise an estimated $500 million, followed by specialty insurer Fortegra (TFG), which filed to raise $100 million. A flurry of small deals also joined the pipeline. Vaccine developer Sequoia Vaccines (SQVI) filed to raise $20 million. Japanese EV retailer HW Electro (HWEP) and Malaysian consulting services provider QMIS TBS Capital Group (QMIX) both filed to raise $17 million each. Maritime tour operator Amphitrite Digital (AMDI) filed to raise $10 million at an $81 million market cap, and cell therapy biotech FibroBiologics (FBLG) filed for a direct listing on the Nasdaq. SPAC Sichuan WB Technology (WMBT) filed to raise $70 million to target businesses in China and the APAC region.
| 8 Filings During the Week of November 6th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| QMIS TBS Capital Group (QMIX) | $17M | Industrials | Pacific Century Securities |
| Malaysia-based provider of consulting and software development services. | |||
| ZEEKR (ZK) | $500M | Consumer Discretionary | Goldman |
| Premium electric vehicle brand spun out of Chinese automaker Geely. | |||
| Fortegra (TFG) | $100M | Financials | Goldman |
| Specialty insurer focused on niche business lines and fee-based services. | |||
| HW Electro (HWEP) | $17M | Consumer Discretionary | Univest Sec. |
| Japanese retailer of electric light commercial vehicles. | |||
| Sichuan WB Technology (WMBT) | $70M | SPAC | |
| Blank check company targeting businesses in China and the APAC region. | |||
| Amphitrite Digital (AMDI) | $10M | Consumer Discretionary | Maxim |
| Provides maritime tours and activities in the continental US and US Virgin Islands. | |||
| FibroBiologics (FBLG) | $0M | Health Care | |
| Phase 1 biotech developing fibroblast-based therapies for chronic diseases. | |||
| Sequoia Vaccines (SQVI) | $20M | Health Care | ThinkEquity |
| Phase 1 biotech developing a vaccine for recurrent UTIs and small molecules for cancers. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/9/2023, the Renaissance IPO Index was up 24.1% year-to-date, while the S&P 500 was up 14.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Palantir Technologies (PLTR) and Kenvue (KVUE). The Renaissance International IPO Index was down 19.8% year-to-date, while the ACWX was up 6.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
